Finance Departments 'Crucial' to Businesses

    LONDON, ENGLAND, June 06, 2010 /24-7PressRelease/ -- Finance departments have been crucial for organisations during the recession, while many have seen their presence and strongholds increase. An ever-growing number of business leaders are also coming from the finance function.

Finance departments have been crucial for businesses during the recession, with many having stepped out of the shadows and boosted their presence and strongholds within their company.

A very real recent trend of the downturn has been the finance department becoming much more of a central point of the organisation. This has had a direct impact on the way all accountants are working, from graduates to Finance Directors and Chief Financial Operators.

Mark Gourley, Executive Business Manager at Reed Accountancy, said: "Having strong people in the accounts department will have been a real asset to businesses as they traded through difficult conditions during the recession.

"Indeed for some companies these individuals may have made the difference between a business surviving or going under. Skills in areas such as risk mitigation and cash-flow/ liquidity management will have been particularly important.

"Part-qualifieds will have been encouraged to add value wherever possible - looking for opportunities to improve efficiencies, reduce costs, provide analysis of sales/profit and so on.

"I believe the finance/accountancy department is seen less now by organisations as 'just another overhead', as businesses seek opportunities for the finance function to add value." Derek Coleman, Regional Manager at Reed Accountancy Central South West Region, added: "Finance/accountancy departments have been crucial for organisations during the recession and they have generally increased their presence and strongholds. They have become central, with many leaders of organisations now coming from the finance function."

With technical skills often taken as a given by employers, businesses try to differentiate between part-qualified candidates as potential leaders by assessing their skills in other areas, as well as looking for evidence of achievement. Part-qualifieds who develop commercial acumen (e.g., using/ interpreting the numbers to help the business achieve its goals) will be well placed to move into leadership roles in the future.

Strong people skills/communication/ managerial skills (for example the ability to communicate financial information effectively to non-financial management) will also have an advantage.

The future leaders of industry are more likely to currently be studying the ACA route. A recent statistic that suggested around two thirds of qualified accountants of FTSE 100 companies in FD or CEO roles will be ACA qualified.

That said, there are many very capable FDs out there who qualified ACCA or CIMA - and at public sector organisations with CIPFA qualified accountants in leadership roles.

"I'm sure most part-qualifieds will still initially head into traditional accounting roles upon qualification - Financial Accountant, Management Accountant, Financial Analyst, Internal Audit, Company Accountant positions for example, with some choosing to specialise in areas such as taxation, treasury or corporate finance," added Mark Gourley.

Across the board, new opportunities for all finance staff are on the up as companies begin switching their attention away from the recession towards the future and what the next five years will bring.

Retail banks are just one example of a sector now looking for accountants who are analytical, predictive and forward thinking.

Finance job departments will be heading out of the collective 'heads down' survivor mode they were forced to adopt 18 months ago in the wake of the financial crisis.

We are already seeing signs they are beginning to adapt to the 'new' realities of the current economic recovery and a more complex and taxing regulatory environment.

Following the recession, partqualified may also find businesses more mindful of costs and that reflected in slightly less generous study packages.

This could mean less time off for study and/or more carefully worded contracts with claw-backs in place if part-qualified employees should leave the business.

After a few years post-qualification, some of today's part-qualified professionals will find themselves in broader operational or commercial roles, having used accountancy as a platform from which to progress their career in another direction.

Interested in recruiting? For more information on recruitment and jobs offered by Reed Specialist Recruitment, please visit their website www.reedglobal.com.

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